| Updated: January 15, 2025Indonesia, the world’s fourth most populous country, has an increasing number of locals who engage or are at least interested in Forex trading. The Indonesian Forex market is regulated by the Commodity Futures Trading Regulatory Agency (BAPPEBTI) and the Financial Services Authority (OJK), which ensures that all Forex brokers operating in the country comply with the relevant laws and regulations.
Below you can find a list with Forex brokers regulated in Indonesia:
Top 9 Forex Brokers in Indonesia
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
AvaTrade
- Minimum deposits from $100
- Licensed by 11 regulatory bodies
- Retail forex leverage of up to 1:400
Trading Instruments- Forex
- Major stock indices
- Cryptocurrencies
- Commodities
- Bonds
- Individual Shares
- ETFs
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
-
FXTM
- Established brokerage company regulated by UK FCA, Kenya CMA, and Mauritius FSC
- MT4, MT5, Mobile Trading Platform
- $1M Lloyd’s of London account insurance
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Plus500 | 1.2 | $0 |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| AvaTrade | 0.9 | $0 |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| FXTM | 0.1 |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Plus500 |  |
$100 |
| FP Markets |  |
$50 (AU$100) |
| Fusion Markets | |
$0 |
| Axi | |
$0 |
| CMC Markets | |
$0 |
| Pepperstone | |
$0 |
| AvaTrade | |
$100 |
| IC Markets | |
$200 |
| FXTM | |
$200 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Plus500 | |
1:30 |
| FP Markets | |
1:30 |
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| Axi | |
1:30 |
| CMC Markets | |
1:30 |
| Pepperstone | |
1:30 |
| AvaTrade | |
1:30 |
| IC Markets | |
1:30 |
| FXTM | |
1:2000 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Plus500 | |
60+ |
| FP Markets | |
70+ |
| Fusion Markets | |
80+ |
| Axi | |
80 |
| CMC Markets | |
330+ |
| Pepperstone | |
90+ |
| AvaTrade | |
50+ |
| IC Markets | |
61 |
| FXTM | |
Comprehensive Comparison of the Best Indonesia Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$100 |
|
1.2 | ||
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$0 |
|
0.5 |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$100 |
|
0.9 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$200 |
|
0.1 |
|
In this article, we will provide an overview of the Forex market in Indonesia, including the legal forms of Forex trading, restrictions on currency trading, regulatory bodies, requirements for Forex brokers, and how to identify reliable Forex brokers accepting Indonesian clients.
Legal Forms of Forex Trading in Indonesia
The Indonesian Forex market offers a wide range of trading opportunities, including spot trading, CFDs, and futures. Indonesian traders can trade with various currency pairs, including IDR, USD, EUR, and other major currencies. In Indonesia, various forms of Forex trading are allowed, including spot trading, CFDs (Contracts for Difference), futures, and options.
The main characteristic of spot trading is buying or selling a currency pair at the current market price, with the transaction typically settling within two business days. Most forex brokers, however, focus on offering CFDs on forex pairs, which offer traders the chance to speculate on the price movement of a currency pair without actually owning the underlying asset. Futures and options are also available in the Indonesian Forex market, allowing traders to buy or sell a currency pair at a predetermined price on a specific date in the future.
Additionally, Indonesian traders can also trade currency pairs with leverage, which can amplify both gains and losses. However, it is essential to note that leverage can be risky and should be used with caution.
The Commodity Futures Trading Regulatory Agency (BAPPEBTI) and the Financial Services Authority (OJK) regulate all forms of Forex trading in Indonesia, ensuring that Forex brokers comply with the relevant laws and regulations. The regulatory bodies also provide guidance and information to traders on the risks associated with Forex trading and the importance of choosing a reliable and regulated Forex broker.
Restrictions on Currency Trading in Indonesia
While Indonesia allows various forms of Forex trading, there are some restrictions on currency trading in the country. For example, spread betting on currency pairs is not allowed in Indonesia, as it is considered a form of gambling. Additionally, some Forex brokers may not offer certain trading instruments, such as binary options, due to regulatory restrictions.
The Indonesian forex regulatory bodies have also imposed restrictions on the marketing and sale of Forex trading products to retail clients, particularly those with high leverage or complex features.
Forex brokers operating in Indonesia must comply with the aforementioned restrictions and ensure that their trading products are suitable for retail clients. Furthermore, Indonesian traders are advised to trade with Forex brokers that are regulated either by the local regulatory bodies or offshore tier-1 regulators monitoring forex services on a global scale. This ensures that Indonesian traders are protected from unregulated and potentially dangerous Forex brokers.
Who Regulates Forex Trading in Indonesia?
The regulation of the Forex market in Indonesia falls under the remit of BAPPEBTI and OJK. The former is responsible for regulating and supervising commodity futures trading, including Forex trading, while the latter is responsible for regulating and supervising the financial services industry, including banking, securities, and insurance entities.
The two Indonesian regulatory bodies work together to ensure that Forex brokers operating in Indonesia comply with the relevant laws and regulations. They also provide guidance and information to traders on the risks associated with Forex trading and the importance of choosing a reliable and regulated Forex broker.
Requirements for Forex Brokers in Indonesia
Forex brokers operating in Indonesia must comply with various requirements, including negative balance protection, leverage limits, investor compensation, risk disclaimers, fund segregation, and automatic margin closeouts. Negative balance protection is a feature that prevents traders from losing more than their initial deposit. Leverage limits restrict the amount of leverage that brokers can offer to traders, with a maximum leverage limit of 1:100 for major currency pairs and 1:50 for minor currency pairs.
Investor compensation is also required, which protects traders in the event that the broker becomes insolvent. Risk disclaimers are also required, which warn traders of the potential risks associated with Forex trading. Fund segregation is also required, which means that client funds are held in separate accounts and are not used for the broker’s own trading activities. Automatic margin closeouts are also required, which automatically close a trader’s position if their account balance falls below a certain level.
It should be noted that since over 87% of the Indonesian population prefesses Islam, Forex brokers catering to Indonesians are also required to offer trading conditions that are in compliance with the Sharia Law. That mainly involves the use of Islamic (swap-free) accounts that eliminate the charge or payment of swap fees.
How to Identify Reliable Forex Brokers Accepting Indonesian Clients
Identifying a reliable Forex broker that accepts Indonesian clients can be a challenging task, but there are several steps that traders can take to ensure that they choose a reputable and trustworthy broker. First and foremost, traders should check that the broker is licensed and regulated by the Indonesian regulatory bodies or offshore reputable regulators based in different jurisdictions.
Traders can check the official register of licensed brokers on the website of BAPPEBTI to confirm the validity of a broker’s license. Alternatively, if the broker operates under licenses by other reputable regulators, we advise checking the registers of the respective organizations.
Another important factor to consider when assessing the reputation of a forex broker is price transparency, which refers to the broker’s ability to provide clear and transparent pricing information. Traders should be able to easily access information on the broker’s spreads, commissions, and other fees, and should be wary of brokers that charge excessive or hidden fees.
Are There Taxes on Profits from Forex Trading in Indonesia?
Yes, there are taxes on profits from Forex trading in Indonesia. The Indonesian tax authority, the Directorate General of Taxes (DGT), considers Forex trading to be a form of taxable income. The tax rate on Forex trading profits in Indonesia may range between 5% and 35%, depending on the taxable amount.
Traders are required to report their Forex trading profits on their tax return, and must pay tax on any profits made. It’s worth noting that the tax treatment of Forex trading profits in Indonesia can be complex, and traders may need to consult with a tax professional to ensure that they are meeting their tax obligations.
Forex Brokers in Indonesia FAQ
What is the primary regulatory body responsible for overseeing the Forex market in Indonesia?
The primary regulatory body responsible for overseeing the Forex market in Indonesia is the Commodity Futures Trading Regulatory Agency (BAPPEBTI) and the Financial Services Authority (OJK). These two agencies work together to ensure that Forex brokers operating in Indonesia comply with the relevant laws and regulations, and provide guidance and information to traders on the risks associated with Forex trading.
Are CFDs (Contracts for Difference) allowed in Indonesia, and what are the benefits and risks associated with trading CFDs?
Yes, CFDs (Contracts for Difference) are allowed in Indonesia. CFDs are derivative instruments that allow traders to speculate on the price movement of a currency pair without actually owning the underlying asset. The benefits of trading CFDs include the ability to trade with leverage, which can amplify both gains and losses, and the ability to trade on margin, which allows traders to control a larger position with a smaller amount of capital. However, the risks associated with trading CFDs include the potential for significant losses, as well as the risk of margin calls and automatic margin closeouts.
How do I know if a Forex broker is licensed and regulated to operate in Indonesia, and what are the consequences of trading with an unlicensed broker?
To know if a Forex broker is licensed and regulated to operate in Indonesia, you can check the register of licensed brokers on the website of the Commodity Futures Trading Regulatory Agency (BAPPEBTI). You can also check for any warnings or fines issued by the regulatory authority against the broker. Trading with an unlicensed broker can have serious consequences, including the risk of fraud, theft, and significant financial losses. Unlicensed brokers may also not provide the same level of protection and security as licensed brokers, and may not be subject to the same regulatory oversight.
What is the tax rate on Forex trading profits in Indonesia, and are there any tax deductions or exemptions available to traders?
The tax rate on Forex trading profits in Indonesia is typically 20% for residents, although this rate may vary depending on the individual’s tax status and other factors. Traders may also be able to deduct any losses made from Forex trading against their taxable income, which can help to reduce their tax liability. Additionally, traders may be eligible for tax exemptions or deductions on certain types of trading income, such as income from trading in foreign currencies. However, traders should consult with a tax professional to ensure that they are meeting their tax obligations and taking advantage of any available tax deductions or exemptions.
What is the minimum capital requirement for Forex brokers operating in Indonesia, and what are the implications of this requirement for traders?
The minimum capital requirement for Forex brokers operating in Indonesia is IDR 10 billion (approximately USD 700,000). This requirement is intended to ensure that Forex brokers have sufficient capital to cover their obligations to traders and to maintain a stable and secure trading environment. The implications of this requirement for traders are that they can have greater confidence in the financial stability and security of their Forex broker, and can be assured that their broker has the necessary resources to provide a high level of service and support. Additionally, the minimum capital requirement can help to reduce the risk of broker insolvency and protect traders’ deposits in the event of a broker failure.
Conclusion
In conclusion, the Indonesian Forex landscape is a vibrant and rapidly evolving ecosystem, where regulatory oversight and technological advancements converge to create a fertile ground for traders to thrive. As the country’s economy continues to grow and diversify, the demand for Forex trading is likely to surge, presenting opportunities for both local and international brokers to establish a strong presence in the market. By navigating the complex regulatory framework and leveraging the country’s favorable business environment, Forex brokers can unlock the vast potential of the Indonesian market and provide traders with a seamless and profitable trading experience.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.